The UK Treasury is to throw some £50billion away trying to ease the declining economy. Mortgage lenders are to swap assets for government backed bonds, thus propping up the property market.
Notice this cannot be a cure. It can merely be a form of first aid. But once the condition gets to hospital, the doctors will be shaking their heads. Oh dear, they will say, there’s no cure. Permanent intensive care – or maybe a little TLC, until …
That’s the problem, you see. If an economy is going to fall, it will do so regardless. £50billion of taxpayers money will not stop this – only put off the day it happens, and guarantee there is not enough in the tax purse to ease the damage caused when it comes.
© Anthony North, April 2008
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